Mail cash receipts Control

My company's internal controls over email revenue have experienced significant weaknesses in their attempts to increase efficiency, prevent errors, and protect company assets. The company's tellers were found to routinely open cash receipts, stamp all checks "deposit only", and approve checks. Even though the teller is fully aware that non-accountant mail openers are not authorized to approve and stamp checks they receive, the teller nevertheless conducts this activity without the manager's knowledge. executed.

Tellers open these emails with intent to engage in fraud or theft of company property. Therefore, this represents a major weakness of internal control over cash in the company. As opposed to upholding the culture of integrity and maintaining ethical values, the cashier has opted to betray these ideals and instead target to initiate the loss and mismanagement of the company’s funds.

After the reviewing process and consequent identification of the internal control weakness over mail cash receipts, the company should initiate a proper assessment of this weakness and adopt appropriate changes (Arwinge, 2013). In order to address this weakness, the management should properly segregate duties to eliminate the possibility of assigning accounting and control over mail cash receipts to the same person. Though it is difficult in practice to differentiate these duties, the company must ensure separate persons handle the two tasks. Diversifying the task make it easier for the company to identify the person responsible for any unethical practices. For this case, only the bookkeeper should be responsible for opening the mail and making a list of all the cash receipts.

References

Arwinge, O. (2013). Internal control: A study of concept and themes.

Ionescu, L. (2010). Internal control and internal audit. New York: Addleton Academic ] Publishers.